By Damian Reilly
Newscorp chairman says without this companies are 'throwing money in the dark'.
Rupert Murdoch has called for more transparency in the Gulf advertising markets, saying that without it advertisers are effectively “throwing money in the dark.”
Addressing the Abu Dhabi Media Summit, the News Corporation chairman said: “The simple fact is that if you want quality content, you have to encourage a marketplace where money flows to those who invest in and create that content.
“A more transparent advertising market means having effective tools to measure who and what people are watching. Advertisers and creators need metrics that tell them who they are reaching and how effective their message is, or else they are simply throwing money in the dark.”
Murdoch said that making the advertising markets in the Gulf and wider Middle East more transparent would better drive money towards the creative indistries.
He said: “A more transparent advertising market will also encourage media buyers and sellers to compete for business. By contrast, opaque markets tend to be unfairly dominated by one or two players.
"This can be a cosy arrangement for those players. But a nation pays a very high price for this cosy arrangement – because it takes away the financial engine needed to drive investment in local content.”
On the back a resurgence in global advertising sales and the success of the film Avatar, which the company financed, Newscorp recently posted a fiscal Q2 net income of $254m, up from a net loss of $6.4bn a year ago.
Thank you Murdoch, but could you have at least been a lot more elaborative as to what did you exactly mean by transparent and opaque advertising? I doubt most of the attendees at the event understood what you meant.
I think it is about time that local media houses should put their house in order by bringing transparency through audit and tools. How many media houses here juggling with subscription numbers, tv ratings etc. If they want the media industry to grow and prosper then they need to bring transparency in their operations.
What he means by transparency is make the market more open so that he can come & take over & mainulate the market as he likes...
Transparency means open for him to come control the market and lead the new generation of the whole area to where he wants them to go. Google him, you'll be enlighted.
Murdoch is no fool and he know how to play the game effectively. He proved it in India, and even swallowed very small regional channels. He is trying to do the same in Arab World. This type of talk is just a beginning. His empire will spread like a cancer in Arab World.
Without transparency in the marketing communication industry it will turn into a commodity. The vicious circle starts with "credible" media research and monitoring companies, media vehicles that "generate" their own content selling on the basis of a media rate card that is proportional to their "actual" circulation and readership figures, then a "creative" agency that should provide "original", relevant and exciting communications to the clients target audience, then comes the "committed" media auditors who check that the house is in order. Finally comes the most important (in my opinion) peace of the castle in the sand, actionable legislation and "active" governing bodies. If the industry is "that" important then it should be protected by laws. Circle closed. Feedback. Start again.